Man Pleads Guilty in Largest ID Theft Case in US History

A former employee of Teledata Communications Inc (TCI), a New York credit reporting company, has pleaded guilty in an identity theft case described by prosecutors as the largest in US history. Philip Cummings admitted using his position as a customer help desk person at TCI to misappropriate confidential passwords and codes which gave access to the personal credit reports of more than 30,000 people. These reports were sold to a network of identity thieves, who used the information to deplete bank accounts, charge credit cards, take out loans and engage in other activities, resulting in losses of between $50 million and $100 million over a period of three years. The scheme first attracted headlines two years ago when Cummings and his accomplices were arrested and charged. This highlighted the vulnerability of computerized information systems to internal security breaches. Cummings now faces at least 14 years in prison and could pay a fine up to $1 million. At the plea hearing, he told the judge he did not appreciate the "magnification" of his actions. Identity theft has been highly publicized as a prevalent and costly crime. The Cummings case serves as a reminder that the potential damage that may be caused by one insider makes it critical to establish policies and safeguards to manage employee access to consumers' personal information and to maintain internal controls that ensure its security and confidentiality. For more information about the case, see: http://news.com.com/2102-1029_3-5367658.html; http://washingtonpost.com/wp-dyn/articles/A20589-2004Sep14.html; or http://news.com.com/2102-1023_3-971196.html. Summary by: Rosa Kim